Moodys CorporationMCO
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Cloud & Digital Infrastructure
Moodys CorporationMoody's warns France's 2027 budget is 'highly uncertain'
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Ratings agency Moody's Ratings said on the 2nd that with a presidential election approaching, the prospects for passing France's 2027 budget are highly uncertain. It expects political fragmentation to persist after the election and sees fiscal consolidation remaining difficult. Moody's is due to review France's Aa3 rating on the 23rd, and the current outlook is negative, indicating that any future rating change is more likely to be a downgrade than an upgrade. On the 1st, the French government submitted to parliament a 2027 budget draft with a strong austerity bent aimed at reducing the fiscal deficit. Moody's noted that whether France's institutions can tackle major policy challenges despite parliamentary fragmentation will be the biggest factor in judging whether the negative outlook can be resolved.
Moodys Corporation